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Indoor Cycling Studio Cyc Goes Bankrupt, Adding to Fitness Woes
(Bloomberg) -- Indoor cycling studio chain Cyc Holdings LLC filed for bankruptcy after the coronavirus temporarily shut down its operations in cities across the U.S.The fitness company’s Chapter 11 petition filed in Delaware late Wednesday will allow Cyc to get out of leases and pay back creditors while continuing to operate.Cyc is the latest in a string of fitness companies to seek bankruptcy protection after struggling to coax back members following some easing of coronavirus shutdowns. It operated studios across major cities in the U.S. including New York and Los Angeles.Zengo Fitness LLC, an affiliate of Cyc with studios in the Washington, D.C., area, and the company’s California-based Cycle House locations also sought court protection, papers show. David Klauder, a restructuring attorney for Cyc, didn’t respond to messages seeking comment.Cyc’s bankruptcy follows other cycling boutiques. Flywheel Sports Inc., the operator of studios beloved by fitness-obsessed city dwellers, filed Chapter 7 last month with plans to go out of business and sell its assets to pay off debts and close locations.Major gym chains have also come under pressure. Town Sports International Holdings Inc., owner of the New York Sports Clubs and Lucille Roberts gyms, went bankrupt in September. It’s listed as a creditor in Cyc’s case, with over $130,000 in claims owed to a Town Sports Boston location. Gold’s Gym International Inc. sought court protection from its creditors in May and 24 Hour Fitness Worldwide Inc. filed for bankruptcy in June.New York and New Jersey have allowed certain gyms to reopen at limited capacity. But New York City Mayor Bill De Blasio has expressed safety concerns over reopening and some local officials opted to extend a ban on indoor classes, hindering efforts by smaller boutique chains to return even on a partial basis.YogaWorks Inc., a chain of yoga studios and international yoga schools, also filed for Chapter 11 late Wednesday with plans to close all its locations. The company cited ongoing pressure from the pandemic after it had to halt in-person classes. It will continue its streaming service and teacher training programs.The case is Cyc Holdings LLC, 20-12594, U.S. Bankruptcy Court, District of Delaware.(Updates comment line, adds gym re-openings and YogaWorks filing in fourth, seventh and eighth paragraphs.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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